COMPANY HISTORY HUMAN RESOURCE MANAGEMENT PRODUCTION AND QUALITY CONTROL RESEARCH AND development Bajaj eco spirit

MARKETING STRATEGIES FINANCIAL Overview SWOT ANALYSIS FUTURE GOALS local community development recognition conclusion BIBLIOGRAPHY

Founded in 1926.

The man behind BAJAJ: JAMANALAL BAJAJ.

He valued honesty over profit, actions over words and common good over individual gain.

KAMALNAYAN BAJAJ, in 1942, diversified it into various manufacturing activities. 1931, started as sugar manufacturing factory.
1945, turned as the BAJAJ AUTO. RAHUL BAJAJ took charge of business in 1965 Worth US$ 3 billion

The world's 4th largest two- and three-wheeler company live their brand by its values of: Innovation, Perfection, and Speed.

Innovation is how they create the future. It is a value that provokes them to reach beyond the obvious in pursuit of that which exceeds the ordinary.
Perfection is how they set new standards.It is a value that exhibits there determination to excel by endeavouring to establish new benchmarks all the time. Speed is how they convey clear conviction.It is a value that keeps them sharply responsive, mirroring their commitment towards there goals and processes.

Chairman & MD: Rahul Bajaj

Vice Chairman: Madhur Bajaj

Executive Director: Sanjiv Bajaj

Top: Rahul Bajaj Left: Madhur Bajaj, Right: Sanjiv Bajaj

CASTING & FORGING Buffing & Heat treat.

Crank Case

Misc. Alu. Casting

Misc nuts & bolts

Sheet plates Cutting to size

Machining Bought out comp. Minor ass.

Machining

Buffing

El. Plating

Pressing

Ht. Trt. & Grd. Engine ass. Engine testing Final assembly Quality test.

Wheel assembly paintin g

Weld/buff chassis forming

Chassis forming

Dispatch for sale

1971 - Three-wheeler goods carrier 1972 - Bajaj Chetak 1976 - Bajaj Super 1977 - Rear engine Autorickshaw 1981 - Bajaj M-50 1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1991 - Kawasaki Bajaj 4S Champion 1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw 1998 - Bajaj Caliber, Bajaj Legend, India's first fourstroke scooter, Bajaj Spirit 2001 - Eliminator, Bajaj Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke, Bajaj Discover 2005 - Bajaj Wave, Bajaj Avenger 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal,Bajaj Pulsar 220 DTS-Fi, XCD 125 DTS-Si (Pronounced Exceed 125 DTS-Si)

Trust builds quality Quality builds satisfaction.

Satisfaction builds relationships

Relationships builds trust We believe in.. A Tradition of Trust

Bajaj Auto has a Research and Development wing geared to meet two critical organizational goals: Development of exciting new products that anticipate and meet emerging customer needs in India and abroad Development of eco-friendly automobile technologies Investing heavily in the latest, sophisticated technologies. Expertise of leading international design and automobile engineering companies working in specific areas.

1.

2.

1. 2. 3. 4.

They are committed for continual improvement of safety, occupational health & environment performance & compliance with applicable safety, occupational health & environmental legislations, regulations & other requirements. Create a proactive SHE management system that addresses significant safety, occupational health & environment aspects related to activities, Products & services. Minimize the generation of waste& conserve resources through better technology & practices for prevention of pollution. Identify potential risks/hazards & follow safe work practices by using equipments, tools & personal protective equipments as applicable. Promote SHE awreness amongst all who work for & on behalf of Bajaj Auto Ltd. & motivate them to fulfil our commitments.

They pledge towards creating & preserving a cleaner, healthier & safe work environment.

Bajaj Auto Ltd., manufacturer of two and three wheeler vehicles is committed to prevention of pollution, continual improvement of our environmental performance and compliance with all applicable environment legislation and regulation.

Being the leading manufacturer of two & three wheelers market BAL(Bajaj Auto Ltd.) has been providing the best of the class models at competitive prices. Most of the Bajaj models come loaded with the latest features within the price band acceptable by the market. They regularly update the low price bikes with the latest features like disk-brakes, anti-skid technology and dual suspension, etc.

BAL adopted different marketing strategies for different models, few of them are discussed below: Kawasaki 4S - First attempt by bajaj to make a mark in the motorcycle segment. The target customer was the father in the family but the target audience of the commercial was the son in the family. The time at which Kawasaki 4S was launched Hero Honda was the market leader in fuel-efficient bikes and Yamaha in the performance bikes. The commercial of Kawasaki 4S had the punch line "Kyun Hero" means "now what hero" which reflected the aggressiveness in the marketing front by the company. Caliber - The focus for the Caliber 115 was youth. And though Bajaj made the bike look bigger and feel more powerful than its predecessor its approach towards advertising is even more radically different this time around. The teaser campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a trendy motorcycle for the college-goers and the 25 plus executives both at the same time

Pulsar Discover Bajaj Auto's entire product portfolio, from the entrylevel to the premium, is being sold by the same dealers. The restructuring will involve separate dealer networks catering to the urban and rural markets as well as its three-wheeler and premium bikes segments. Bajaj Auto also plans to set-up an independent network of dealers for the rural areas. The needs of financing, selling, distribution and even after-sales service are completely different in the rural areas and do not makes sense for city dealers to control this.

Particulars MOTORCYCLES TOTAL 2 WHEELERS 3 WHEELERS

August 2008 175,274 176,631 24,324

August 2007 167,483 170,203 25,504

Change % 5 4 (5)

TOTAL 2&3 WHEELERS

Exports out of the above

200,955
71,105

195,707
56,452

3
26

Particulars MOTORCYCLES

April ~ August 2008 902,743

April ~ August 2007 821,406

Change % 10

TOTAL 2 WHEELERS 3 WHEELERS

908,579

833,259

106,175

119,929

(11)

TOTAL 2&3 WHEELERS Exports out of the above

1,014,754

953,188

337,075

259,974

30

Profit & loss account

Mar ' 08 Income: Operating income Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit
Profit loss account Other recurring income

Mar ' 07 353.15 32.30 51.35 107.46 191.11 162.04 44.95 206.99 134.26 3.04 69.70

Mar ' 06 210.08 20.55 29.20 55.27 105.02 105.06 27.24 132.30 79.96 1.73 50.61

Mar ' 05 145.40 12.62 15.75 32.17

( R s 60.54

Mar ' 04 108.07 9.40 11.74 19.47 40.62 67.46 18.63 86.09 36.32 1.88 47.89

409.66 Expenses 50.25 94.31 130.06 274.62 135.05 76.28 211.33 185.38 4.85 21.10

84.86 c
o r 104.63 e 44.60 )
r 19.78

Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT

2.01 58.03

Tax charges Adjusted PAT Non recurring items Other non cash adjustments
Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax

9.86 11.24 7.19 2.15

20.58 20.58 3.66 0.62

24.03 45.66 1.28 0.70

47.64 47.64 10.60 1.80

17.26 33.35 4.21 -16.48

21.08 21.08 8.40 1.18

9.81 48.22 3.46 4.27

55.96 55.96 12.37 1.73

15.68 32.21 0.49 5.87

38.57 38.57 9.89 1.27

Share holding
Share holding pattern as on : Face value No. Of Shares 30/06/2008 10.00 % Holding No. Of Shares 31/03/2008 10.00 % Holding No. Of Shares 31/12/2007 10.00 % Holding

Promoter's holding Indian Promoters

Sub total 19075276 19075276 52.12 52.12 19043276 19043276 52.04 52.04 19043276 19043276 52.04 52.04

Non promoter's holding Institutional investors Banks Fin. Inst. and Insurance FII's Sub total 700 7777394 8540545 21.25 23.34 700 7669407 8423443 Other investors 20.96 23.02 700 7474752 8018168 20.43 21.91

Private Corporate Bodies NRI's/OCB's/For eign Others Direcctors/Empl oyees

Others Sub total General public Grand total

1043786

2.85

1017253

2.78

1109860

3.03

3248015 544748 4836549 4143706 36596076

8.88 1.49 13.22 11.32 100.00

3264705 32000 543212 4857170 4272187 36596076

8.92 0.09 1.48 13.27 11.67 100.00

3250514 32000 644662 5037036 4497596 36596076

8.88 0.09 1.76 13.76 12.29 100.00

Dividend
Year 2008 2007 2006 2005 2004 2003 2002 Month May May May May Jun May May Dividend (%) 10 30 40 75 60 45 45

2001

Jun

30

It is defined as a set of systems, processes & principles which ensure that a company is governed in the best interest of all stake holders. Bajaj Autos commitment to good corporate governance practices predates the laws and mandates of the Securities and Exchange Board of India (SEBI) and the stock exchanges. Transparency, fairness, disclosure and accountability have been central to the working of the company, its management and its board of directors. The standing that the company enjoys in the corporate world has as much to do with its reputation for integrity and transparency as with its performance

Bajaj Auto set up its audit committee in 1987. Since then, the company has been reviewing and making appropriate changes in the composition and working of the committee from time to time to bring about greater effectiveness and to comply with various requirements under the Companies Act, 1956 as well as Clause 49 of the listing agreement.

The current audit committee consists of the following directors:

S H Khan, Chairman D J Balaji Rao J N Godrej Naresh Chandra Nanoo Pamnani

StrengthS

Highly experienced management. Extensive R & D focus. Widespread distribution network. High performance products across all categories.

WEAKNESSES

Still has no established brand to match Hero Honda's Splendor in commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki)

OPPURTUNITIES

Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. The growing gearless trendy scooters and scooter market. Growing world demand for entry-level motorcycles especially in emerging markets

THREAT

The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost) TATA Ace is a serious competition for the three-wheeler cargo segment.

Continuously launching bikes with new technologies like Digital Twin Spark - Swirl induction (DTS-Si) engine. Along with Renault they are ready to launch there new concept car Bajaj lite.

Jankidevi Bajaj Gram Vikas Sanstha

Bajaj Autos Corporate Social Responsibility towards the rural poor is carried out by a trust, Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). This trust was formed in 1987. JBGVS acts as a catalyst for development at the grass root level in 44 villages around Bajaj Auto plants in Pune and Aurangabad District. A project on Rural Education and Information Network (REIN) is being implemented in 27 villages of Maval Taluka. This project imparts non formal education to non school going and poorly performing school going children. JBGVS assist BPL families to construct low cost houses under Indira Awas Yojana. As also help repair school rooms, old structures and construct cowsheds / mangers, community centers etc

JBGVS also conduct classes for vocational training like tailoring, bamboo craft, handicraft, making of greeting cards, mats, paper bags and assist computer training for Maharashtra State-CIT examination. Samaj Seva Kendra was established in 1975 by Bajaj Auto and is part of JBGVS. SSK provides facilities for social development of the residents of Akurdi, Nigdi and adjoining townships, with the aim of improving their quality of life, through skill development training, hobby centre, nursery education, health care, sports, music, dance and cultural programmes

BAL look to continuously improve there Products and services to compete with global standards as new technologies are introduced at the blink of an eye. BAL obsession with perfection has been recognized by various institutions such as Automotive Publications like Overdrive, BBC world wheel awards, CNBC Autocar awards. Almost all the new bikes introduced by Bajaj in previous 56 years has been awarded with the bike of the year award. It includes bikes like Pulsar, Discover, Eliminator & Platina

Bajaj is Indias largest automobile manufacturer.

They firmly believe in providing the customer

VALUE FOR MONEY,FOR YEARS through there

products & services.

Quality, safety & service has been given as much

considerations as productivity, cost & delivery

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